Spent almost 5% of a retirement fund to buy gold mutual funds and already saw a 10% drop. Not sure if it is a mistake in the long run. But the timing is definitely not great. This was mostly aimed as a hedge of the non-stop money printing worldwide governments. I consider this a “short-term” investment and probably will put this back somewhere else once the economy back to normal (if it will ever be). I can’t still understand why the dollar is getting stronger recently despite all this easing. Somewhere must be soaking all the money but it was not gold and currently not bitcoin. Even bitcoin did soak a significant amount lately.
One lesson learned (not the first time) is that I shouldn’t invest all at one time. Looking back, 5% is already all I want to put on gold. Since the gold price can be artificially controlled, the upside is limited. The world government won’t allow it to elevate indefinitely. It seems that 2K gold is what is acceptable by the world government. They will try to push it down whenever it is reached.
I guess I am not lost yet. But I probably should sell half of my holding when the gold price passes 2K again.
Update:
Looking at the trend of previous rise and dip, now I think gold may eventually fall to $1400 or $1600 and settle there until it will shoot up again for the next crisis. I probably will still have another chance to sell my position before everything settles. It seems that now I am about 7% of my assets exposed to gold. A very expensive mistake.